The Competition Commission of India (CCI) on Tuesday cleared state-owned Central Bank of India’s proposed stake acquisition of stakes in Future Generali India Insurance and Future Generali India Life Insurance. Central Bank of India is a scheduled commercial bank.
“The proposed combination envisages acquisition by Central Bank of India of 24.91 per cent equity stake in Future Generali India Insurance Company Ltd (FGIICL),” CCI said in a release.
FGIICL provides personal insurance, commercial insurance, social, and rural insurance, etc.
The CCI has also approved a 25.18 per cent equity stake in Future Generali India Life Insurance Company Ltd (FGILICL) through bid/resolution plan submitted by the Central Bank of India under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
FGILICL provides savings insurance, investment plans (ULIP), term insurance plans, health insurance plans, child plans, retirement plans, rural insurance plans and group insurance plans.
In August, Central Bank of India announced that it has emerged the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in life and general insurance venture.
The state-owned bank said it has been declared as the successful bidder by the Committee of Creditors (CoC) for the sale of Category 1 assets of FEL in Future Generali India Life Insurance Company Ltd and Future Generali India Insurance Company Ltd.
Future Enterprises owned a 25 per cent stake in Future Generali India Insurance and a 33 per cent stake in Future Generali Life Insurance.
In July 2022, the National Company Law Tribunal (NCLT) ordered initiating insolvency resolution proceedings against the debt-ridden FRL.
The NCLT has passed the order after allowing the petition filed by the Bank of India (BoI), following loan defaults by FRL — the flagship firm of the Kishore Biyani-led group.
